This may cause serious problems for certain frame supplies. Has anyone at ECCA heard about the stability of the company since the directors of the majority owner Moulin were arrested in Hong Kong relating to possible fraud?
This may cause serious problems for certain frame supplies. Has anyone at ECCA heard about the stability of the company since the directors of the majority owner Moulin were arrested in Hong Kong relating to possible fraud?
I have listened the news this morning and it mentions two director with one secretary had been arrested for fraud of HK$1,600,000,000.
I don't know exactly what the arrangement with ECCA and Golden Gate Capital is but I would bet that there are provisions whereby Golden Gate which owns 43% of ECCA, can have directors removed for fraud or accused of fraud.
If my memory is correct and ECCA files for Chapter 11 which is likely since the bankrupt Moulin in Hong Kong owns 53% of ECCA and I am sure that the bankruptcy trustees in Hong Kong will try to reverse the transaction to get there hands on the Moulin cash used for the purchase since it was used fraudulantly.
ECCA is untouchable by the whole Moulin liquidation because of the terms of the sale... I forget the exact language used, in the letter that McComas sent out to us, but it did seem that Moulin cannot and probably will not touch ECCA's assets. However, they could probably using this as an opportunity to gain power of an American company almost exclusively, as one of the docs I work with conjectured. His reasoning is thus: The board of ECCA will consist of 5 chairs, one being McComas, two by Moulin and two by GCC... if McComas is taken out of the picture, Moulin could feasibly put someone of their choosing into the vacancy b/c of the majority shareholder status, therefore seizing 3 out of 5 chairs and the simple majority. I don't think this is the case... but there have been stranger things to happen in this world.
As far as I know as an ECCA employee, the company is safe... for now.
P.S.: if I can find that letter... I'll try to share it with ya'll.
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